Gary Gensler indirectly stated that the SEC body will not stop its enforcement actions against crypto exchanges.
Gary Gensler has been chairman of the United States Securities and Exchange Commission (SEC) since Q1 2021. Under the leadership of Gensler, the SEC body initiated multiple lawsuits against several crypto exchanges over providing crypto trading, which are unregistered securities under the purview of the SEC body. Gensler usually faces huge criticism from the crypto community as well as from crypto entrepreneurs for his intense enforcement actions against the unregulated crypto market.
On 5 June 2024, US SEC chairman Gary Gensler appeared in a CNBC interview and said that the crypto investment risk disclosures by the crypto exchanges are not enough to protect them from being sued by regulators if they are “manipulating the market.”
Gensler noted that the Crypto companies can be sued if they share misleading information that causes traders to invest in products they wouldn’t have otherwise.
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“Disclosure doesn’t necessarily protect a bad actor,” Gensler added.
Furthermore, the SEC chairman noted that many crypto exchanges now give disclosure about the crypto services they are offering & intend just like traditional financial players.
Notably, here Gensler called crypto companies bad actors indirectly & confirmed that all of them will face lawsuit actions. Earlier last year a similar kind of statement was passed by Gensler, where he said the problem with crypto companies was they offer services for that market which was unregulated, so they have to face legal issues.
The CNBC interviewer also asked Gensler whether the SEC will allow spot ETF applications for meme crypto tokens e.g. Bonk, and Sushiswap, $GME token, which are responsible for trading in millions.
Gensler ignored this question & called the majority of crypto tokens unregistered security assets, so people should make decisions more properly before investing.
Read also: Hottest Chinese Bankrupt Crypto NFTs Project Rivermen Owes Employees Over 591,692 Yuan
American SEC chairman says disclosures are not enough to protect crypto exchanges
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